Digital asset ETP specialist 21Shares has cross-listed its Ethereum and bitcoin cash products on Xetra.
21Shares has cross-listed its directly backed ethereum and bitcoin cash ETPs on Xetra.
The 21Shares Ethereum ETP (21XE GY) and 21Shares Bitcoin Cash ETP (21XC GY) trade in euros and come with expense ratios of 1.49% and 2.50% respectively.
Both products are central counterparty cleared, something that is absent in underlying cryptocurrency markets.
21Shares notes that a central clearing counterparty adds several benefits including standardization, risk reduction, and operational efficiency, which in turn enhances liquidity and reduces trading costs relative to bilateral clearing.
The ETPs, which originally debuted on SIX Swiss Exchange, provide directly backed exposure to “physical” ether and bitcoin cash with holdings of tokens stored in institutional-grade cold storage by Coinbase.
According to CoinDesk, ethereum and bitcoin cash represent the world’s second and ninth-largest cryptocurrencies by total market cap, respectively. Ethereum has established itself as the leading platform for smart contracts, while bitcoin cash, the most-established spin-off from bitcoin, was developed to enhance transaction processing and scalability compared to its original blockchain.
Similar to all digital asset ETPs, the 21Shares products enable investors to gain access to cryptocurrencies while bypassing the technical challenges of interacting with cryptocurrency markets such as setting up a digital wallet, managing cryptographic keys, or trading on unregulated crypto exchanges.
Hany Rashwan, CEO of 21Shares, commented: “While other issuers continue to follow our steps in listing a bitcoin ETP on a stock exchange, we had time to build the infrastructure and actively conduct regulatory lobbying for other innovative crypto assets and issuances.
“This is why we were the first to list an ethereum and bitcoin cash ETP on the Swiss stock exchange and we are now leveraging our expertise to provide investors in the DACH region and beyond with the same institutional reach, safety, and cost-effective ways to gain exposure to crypto assets.”
The 21Shares Ethereum ETP houses $110 million in assets. It will compete with the ETHetc – ETC Group Physical Ethereum ETC (ZETH GY), another centrally cleared, directly backed ethereum ETP that has also listed on Xetra.
The 21Shares Bitcoin Cash ETP, meanwhile, has around $6.5m AUM.
21Shares offers a suite of 12 different single-asset and crypto basket ETPs which collectively command more than $1 billion in assets under management.
Last month, it introduced the 21Shares Polkadot ETP (ADOT SW), the world’s first ETP providing exposure to DOT, the token underpinning the innovative Polkadot multi-chain.
Rashwan added: “After the immensely successful launch of the first Polkadot ETP just a month ago, we are working on several more launches in the second and third quarter. In this way, we aim to lead the adoption of crypto assets into conventional asset allocations.”